The primary purpose of this blog (Prithviraj Kothari - MD, RSBL | Bullion market blog) is to educate the masses of the current happenings in the Bullion world.
This blog contains my opinion, which is not to be construed as investment advices.
Information provided in these blogs is intended solely for informative purposes and is obtained from sources believed to be reliable

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Wednesday, 7 November 2012

The OBAMACONOMY!

The Most powerful man of the World is here: US President Barrack Obama. As we see him march towards his second term we expect the commodities market to march upwards too.

Obama has always been the markets favorite. His win will bring in positive sentiments for the market.

Romney was considered as a threat to gold prices as he did not believe in the policy of printing currency to accelerate the economy.

This would have inevitably resulted in the dollar strengthening short term, which would have a reverse correlation with the price of gold, as the dollar strengthens the price of gold often declines.

Nonetheless, gold will be touching the roof in the days to come. Re election of Obama means that FED chairman Bernanke continues his term and hence the monetary measures remain more or less unchanged.

In the short and medium term gold is expected to move in the range of INR 30,000 - 30,500 per 10gm on the lower side and INR 32,000 - 33,000 on the higher side.In the long term gold is expected to move in the range of INR 29,000 - 29,500 on the lower side and INR 33,000 - 35,000 on the higher side.